Tech

Google empire is separated

Letter from Editor: Separation of Empire

John Hancock was said to have extraordinary enthusiasm in signing his name.

He confronted the Declaration of Independence, “writing in special prosperity for King George to read. [it] No glasses! “

In essence, it was an act of separation. Of disassembly.

It’s hard to say that “all industries are bundled or unbundled.” In the case of strabismus, the same can be said when geopolitical municipalities merge into a single body or split into parts. Giuseppe Garibaldi, a general who united the Italian city-state, was Bandler. Similarly, Leopold and other ferocious imperialists who led the “scramble for Africa”. In contrast, Haiti’s freelance warrior Tusan Louver Tulle, like Confederate Jefferson Davis, sought to build a secession nation in the southern United States.

As these examples show, bundling is inherently not good. Each movement is motivated, sometimes irritating, and otherwise malicious.

In the last few weeks, I have written about the phenomenon of a state as a corporation, a meta-state with powers equal to (or more than) traditional sovereignty. The main of these devices is Alphabet, Google’s parent company. In some respects, it is the definitive meta-state of both guides and destinations, spread across the Web, and incorporated into almost every online access.

And it’s unbundled.

Over the last few years, trusted rebels have become prominent, given that they take advantage of and improve upon the capabilities provided by conglomerates. In some cases, improvement is one of usability. Often that is one of privacy, replacing the ad-driven model with subscriptions. The trend seems to be accelerating.

Alphabet is too large to describe the whole thing, due to its size. Instead, there are five key areas where this separation is most clearly seen. Search, browsing, email, and collaboration.

look for

Recent search competition, at the heart of the Google Empire, may be most likely to sweat Sunda Pichai’s forehead. I hate to admit it, but Google is effectively dominating search with a market share of 91.75%. Despite its throat hold, the product has deteriorated over the years and is becoming increasingly bloated as a result of multimedia. The difference in UX between fewer sponsors and organic results is also narrowing, causing confusing clicks. “Do n’t be evil” is now “prevent users from distinguishing between good and evil”.

Founded by Sridhar Ramaswamy, Neeva offers an alternative. Ramaswamy, formerly responsible for Google’s advertising revenue unit, helped build the federation that is currently being elucidated. Neeva, quite reasonably, doesn’t compete with Google’s algorithms and instead pulls results from Bing, Weather.com, and other providers. Instead of making money by selling user data and selling it to advertisers, consumers pay a monthly fee. The boldness of that vision (and arguably the talent of the team) was funded by both Sequoia and Gray Rock. DuckDuckGo and Startapage have been providing privacy-focused solutions for over a decade, both of which monetize through advertising. Neeva’s novel model, investor sterling set, and early buzz suggests that the company could succeed in opening a meaningful niche. Over time, it may erode Google’s share.

browser

Whenever I have more than 10 tabs open, the Chrome browser takes some time to think, often lasting a minute or more. I ran a malware test, closed the application and cleared the cache, but it didn’t help. I am not alone in this experience. Indeed, start-ups have emerged (and raised a fair amount of money) as good prosecutions, all of which are supposed to improve Chrome’s performance. I still can’t switch. Safari is faster on Mac, but I’ve noticed that every time I run the tests, I’m whimsically returning to Chrome. With a robust platform of extensions, Chrome is still the most versatile and (if not working) powerful browser. It’s no wonder that it is 63% of web surfers’ favorite and crushes the next closest option, Safari (14.4%).

Braves and operas have long been popular, with the latter having a 1.8% share. Both seem unlikely to defeat Chrome in the short term.

The Browser Company (TBC) is also a new entrant and hasn’t been launched yet, but it’s a compelling list of current issues. Founded by a former venture capitalist, TBC is invested by architects who define the modern Internet, including founders such as Twitter, Figma, Notion and Github. One of the primitives of the Internet is broken, and it looks like a savvy starting point by integrating and fixing the most savvy builders.

By a small margin, Google is the leading email provider. As of April 2019, Gmail exceeds Apple iPhone usage, with 27.8% of the market. (Note that usage is sorted by device type). Both show the default power. However, consumers are willing to consider alternatives. Email provider Superhuman has gained support in the technology industry due to its sleek design and focus on speed. The company doesn’t offer any meaningful improvement to Gmail’s privacy policy, but the quality of the product still ensures that users pay $30 per month to replace their free alternatives. Investors are crazy as well. RahulVohra’s rethink has raised more than $33 million, with the latest round led by a16z.

Hey, the founding of base camps Jason Fried and David Heinemeier Hanson are another challenger to watch. It is also more radical in its commitment to privacy, which promises not to mine or sell user data. The service monetizes through an annual subscription, along with some interesting status-based pricing mechanisms. (If you want to use [email protected], you have to pay $999 per year, but mario @hey.com only costs $99 per year.)

An application focused on the front, business users is another notable entry. A French company designed to help the team handle customer emails has raised $138.3MM from Sequoia, Uncork, Zoom CEO Eric Yuan.

There is no new choice for email clients. Over the years, many aesthetically pleasing options have been on the market to gain market share. Often, these were small concerns established by development shops and bootstrapped teams. What has changed is the fame of the founders pursuing this space and the willingness of investors to fuel startups. The market seems to feel real vulnerability, perhaps after 10 years.

collaboration

Below the G-Suite banner, you’ll find various applications such as Hangouts, Chat, Documents, Spreadsheets and Calendars.

The first two categories offer the most formidable competition. Zoom has become the default video conferencing solution, robbing both Google and Microsoft products. Slack is dominated by the Internet Relay Chat category, and the Microsoft team is moving towards a growth cap. So far, Google Chat has barely been covered.

Google Docs are under increasing pressure from below. The most trusted challenger is Notion, which is increasingly used by companies as an organization’s wiki and collaboration tool. Notion’s final funding was valued at $2 billion, with just $67 million in venture funding, suggesting that the company was successful in monetization. Coda is another solution that uses a word processor as a starting point for more complex interactions. Other players include almanacs, slabs, and slites. More baroque (or minimalist, depending on perspective), ROHM also reduces the need for documentation.

Notion and Coda have some features and also provide an alternative to Google Sheets. Other companies that make plays include Airtable (though technically a database tool), Causal, and modeling tools. A true replacement for Sheets (or Excel) hasn’t appeared yet, and it’s probably the space to monitor this.

Google Calendar is similarly competitive and potentially vulnerable. It’s necessary to tear Excel (and spreadsheets to a lesser extent, spreadsheets) from the cold, dead hands of bankers and corporate finance departments, but such loyalty does not apply to a humble calendar. GCal is a weird product, which also wins by default. Clockwise, a tool that uses AI to create blocks of uninterrupted time, seems the furthest, raising $31.4MM. Woven, which combines multiple calendars into a single interface, is another entry. Sunsama, Cron, and Timeless each have their own approach, focusing on task management, speed, and value-added services.

Despite all its potential, despite its multi-front advantage, Google is certainly a net benefit to the world that has been around for decades. And although credible rebels are emerging, they are in the early stages. With the exception of Zoom and Slack, these are the gnats around Grizzly. Yes, it’s exciting, but there is no threat to existence. It’s no wonder shareholders don’t care. Google’s stock price has increased more than a third since last year.

However, the time may come when these rebels feel their presence. When “all industries are bundled or unbundled,” when will the scale tilt in the opposite direction? In other words, when will start-ups come together?

This is an interesting question, especially given the potential for increased M&A during this period. For lovers of open-market traded coronaviruses such as Zoom, there may be some better opportunities to leverage the newly discovered scales to extend their feature set. The EV to EBITDA ratio of +1800x won’t last forever, especially if the normal office life similarity returns. Wouldn’t it be wise for them to establish their narrative as a “collaboration” company rather than a video conference?

Most M&A deals are complex and the true amalgam may not appear, at least in the short term, due to the organizational costs of integrating a new team. Still, the Zoom and Slack Union idea is attractive. Mix Super Humans, or add them to Notion. Probably even a Duck Duck Go will create an attractive bundle. A company with the strength and scale to compete with Goliath in technology in the long run.

As we have said, there is no inherent morality in bundling or unbundling. However, it is hard not to want a more viable challenger given the current peculiarities. The business landscape is surrounded by a handful of great beasts and gladly treats the creatures below. Google, Apple, Facebook, or Amazon is barely punished for all discussions about antitrust regulation, and for all the “technical conflicts” of the public. The best we might want is the new Titan or two.

79 years after John Hancock signed the Declaration of Independence on such a vim, a frustrated school teacher published his publication. Walton Whitman relied on two friends who ran a print shop on Fulton Street to publish the first edition of the Leaves of Glass on July 4, 1855. More than these 6 words:

“I’m big, I have many.”

At that scale, Google is home to many of its own. Consumers may benefit because the monoliths are not bundled and each product declares its own independence.

In other news…

The S-1 Club has announced an analysis of lemonade. The insurtech company made more than double the price debut on Thursday. Thanks again to contributors Tanai Jaipuria, Tina Hee, John Hale, Dave Ambrose, Burn Hobart, and Mency Roux.

Click here for details

Marker has published a summary of his findings in “Everything You Need to Know About Publishing Lemonade.” Thanks to Kaushik Viswanath, Bobbie Gossage, and the rest of the marker team.

Click here for details

My interview with Domm Holland was released as part of the Prologue series released this week. It was a lot of fun to hear about Domm’s start of selling computers in his dorm room, his love for boxing and his vision for Fast. His company received Series A from Stripe, Kleiner Perkins, Index, Susa and others.

Click here for details

The latest RFS 100 ideas included Twitter x Pocket mashups, Bitmoji game studios, and verticalized video streaming products focused on religious worship.

Click here for details

thank you for reading. I hope American readers enjoyed the holiday weekend and everyone had the opportunity to relax and recover. If you enjoy your email today, we’d appreciate it if you could consider sharing it.

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